Eyeing control of Brazil's Raizen, IG4 approaches Moelis and Journey

Moelis & Co

Tue 21:33

By Luciana Magalhaes
SAO PAULO, June 16 (Reuters) - Independent investment bank Moelis & Company MC.N and financial consultancy firm Journey Capital, advisers to creditors of sugar and ethanol producer Raizen RAIZ4.SA, received non-binding offers from private equity firm IG4 late on Monday to acquire credits and control of the company, according to three people familiar with the matter.
Two of them cautioned that any deal remains far from certain, with one adding that creditors are unlikely to reach a decision anytime soon.
One of the three said creditors accepted Raizen's offer to convert debt into equity because it was the best alternative available, but that they would prefer not to remain shareholders. 
"So (the success of the proposal) will come down 100% to the conditions offered by IG4," the person said.
IG4, Moelis and Journey Capital declined to comment.
IG4, which recently became co-controller of petrochemical producer Braskem BRKM3.SA alongside oil giant Petrobras PETR3.SA, is seeking to purchase control of Raizen, which just announced a 65 billion reais ($12.7 billion) debt restructuring with local and international creditors, the largest out-of-court restructuring on record in Brazil. 
Known for pursuing control or co-control of its acquisitions, IG4 will likely move forward with the offer only if it secures at least 50% plus one of the restructured credits, the people said.
     

(Reporting by Luciana Magalhaes; Editing by Will Dunham)
((Luciana.NovaesMagalhaes@thomsonreuters.com;))